Arabica coffee futures advanced on Thursday for the second consecutive session, bolstered by light speculative buying and spread activity, market sources said. The New York Board of Trade's arabica coffee contract for September delivery rose 0.75 cent to conclude at 100.70 cents a lb., after trading from 98.60 cents to 101.00 cents
"There was some good buying around 99 (cents) and good selling at 101 (cents)," said a coffee trader at a large investment bank.
"We are right in the middle of the larger (trading) range - 95.85 on the downside to 105.90 on the upside. Barring any major fund activity, it's going to be difficult to approach either end of the range," he said. Among other arabicas, December advanced 0.85 cent to finish at 104.60 cents, while back months climbed 0.85 to 0.90 cents.
Private Brazilian analysts Safras e Mercado said producers in No 1 coffee grower Brazil had sold 17 percent of the current 2006/07 crop by June 30, down from 22 percent a year ago.
Safras, which sees the Brazilian crop at 43.5 million 60-kg bags, said producers had picked 48 percent of the crop by July 12, Reuters reported from Sao Paulo.
In its latest monthly report, the International Coffee Organization pegged global coffee production at 120 million bags, up from 106.4 million bags in the 2005/06 season.
World consumption in 2005 totalled 117 million bags, the ICO said, adding that "the volume of global consumption, which was of the order of 117 million bags in 2005, offers significant support for firm prices whatever the level of world production."
In London, the benchmark September robusta contract on the Liffe exchange eased $5 to end at $1,312 a tonne, having dealt from $1,289 to $1,331.
At the NYBOT, arabica futures trading volume reached an estimated 12,174 lots, up slightly from the 11,4789 contracts officially tallied the previous day.
By the end of trading on Wednesday, open interest in arabica coffee futures stood at 118,380 contracts, down 475 lots.